Would like to buy a non-owner occupied with 5% down conventional.  I have no debt, and a 3 digit income.  Use very little credit if any at all - hence my score.

Any ideas on financing?

Looking at todays market most non-owner Financed properties are tougher to get done.  For Fannie Mae Loans the normal rule of thump is 20-25% down on purchases. 

Paul M. Geske

360-433-0330x17

Paul is correct.  Non-owner will require a mimimum 20% down and you will get much better rate/fees with 25% down.

You can purchase a duplex, 3 or 4 unit with 3.5% down payment FHA (plus closing costs which the seller can pay) if you live in one of the units.  It must be an owner occupied property.  You may not purchase a straight non owner occupied property FHA.

There are other factors that you should be aware of if you are purchasing multiple units:

Net rental income (of three and four unit properties) must be equal to or greater than the projected monthly mortgage payment (PITI/MMI) meaning that the property must be self-sufficient. Net rental income is defined as the "appraiser's estimate" of fair market rent from ALL units (including the unit chosen by the borrower for occupancy) LESS Vacancy, Collection and Maintenance Cost Factors.

For qualifying purposes, projected rents (of rental units only, not the owner occupied unit(s)) may be considered as part of the borrower's gross qualifying income only after deducting the appropriate HOC vacancy and maintenance factor. Rental income may not be used as a direct "offset" to the mortgage payments.

Note: When purchasing three-and four-unit properties, borrowers must have 3-months verified PITI reserves after closing and those reserves cannot be derived from a gift.